The Pension Crisis: It's Coming, and It's Real.
Yes, it is:
Democrats and Republicans took up partisan positions today at the Pension Funding Council. The dispute was over how much money the state can reasonably expect to earn on pension investments over the next 15 years.So not only are we looking at major cuts this year, but by 2011 school districts are going to be contributing more than double to the pension funds than they are now. Also in 2011, the stimulus funds run out. Maybe I'm being Chicken Little, but some of our legislators are living in denial.
State Actuary Matt Smith has said he thinks 7.5 percent is a better target, which requires more state contributions into the state-employee pension funds in the short term, and a less steep increase in 2013 and 2015.
But Democrats, and Gov. Chris Gregoire's budget director Victor Moore and Steve Hill of the Department of Retirement Systems all voted to stick with the 8 percent figure. Also voting in favor were Rep. Kelli Linville, D-Bellingham, and Sen. Margarita Prentice, D-Renton.